Driverless cars to reduce motor claims

Autonomous technology will continue to develop and become more commercially available which will offer insurers a number of opportunities, according to a report by Lloyd’s.

The report, Autonomous Vehicles – Handing Over Control: Opportunities and Risks for Insurance, says that insurance has a key role to play in enabling the development and adoption of this technology. It also suggests that the technology could revolutionise the world of motor insurance as autonomous cars could potentially lead to a substantial reduction in motor insurance claims.

“With a shift towards autonomous technology and away from human operators, the landscape of insurance, especially motor insurance, may change dramatically. There would be a greater need for the expertise of data analysts to understand why an autonomously operated vehicle has failed in the event of an accident,” said the report.

"For autonomous and unmanned technology to become a reality in our world, the risk transfer abilities of insurance and risk management skills of insurers will be key."